Jobless Claims Fail, Recovery Dubious

Posted by - Admin / March 5th, 2010

Jobless claims fell by almost 30,000 last week, giving life to the idea that the recession might be coming to an end. The four-week average doesn’t look quite as good, but maybe the recovery started this week, right!? We can hope.

The reports provide fresh evidence that the economy is steadily growing. But it’s not clear when that improvement will translate into new hiring.

The Labor Department said Thursday that initial claims for unemployment insurance fell by 29,000 to a seasonally adjusted 469,000. That nearly matches Wall Street analysts’ estimates of 470,000.

Still, last week’s drop only partly reverses a sharp rise in claims in the previous two weeks.

Okay, maybe it doesn’t say anything about a recovery, but at least things aren’t getting worse. If the economy is improving, this is good news for every sector. Especially for the retail sector, which seems to suffer disproportionally from recessions.